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Acrylic Resins - The Freedonia Group

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6<br />

Market Environment<br />

<strong>The</strong> Market Environment Section<br />

discusses factors influencing acrylic<br />

resin demand, including technology<br />

and environmental considerations.<br />

This information provides you with an<br />

understanding and an analysis of the<br />

climate in which the acrylic resins<br />

industry operates.<br />

<strong>Acrylic</strong> <strong>Resins</strong> #1492<br />

Feedstocks<br />

MARKET ENVIRONMENT<br />

Demand for raw materials used in the manufacture of acrylic monomers will<br />

expand 3.8 percent per year to 4.4 billion pounds in the year 2005. Raw material<br />

feedstocks utilized SAMPLE in the production PAGEof<br />

acrylic resins consist primarily of acetone<br />

and hydrogen cyanide (to produce methacrylates), acrylic acid (to produce<br />

acrylates) and a range of monohydric alcohols with which the feedstocks are<br />

reacted to produce the various acrylic monomers. Other chemicals, while not<br />

feedstocks, are also utilized, including catalysts and sulfuric acid. In general, the<br />

feedstocks and other necessary chemicals required for acrylic resins production are<br />

widely available and in adequate supply.<br />

Back-integration into raw materials is commonplace in the acrylates sector of the<br />

industry, with all four producers operating acrylic acid production facilities. In<br />

addition, three of the four manufacture at least some of the alcohols required for<br />

acrylics production. In methacrylates, however, the situation is markedly<br />

different. Apart from Rohm and Haas, which produces its own hydrogen cyanide,<br />

methacrylate producers must purchase their raw material requirements on the<br />

merchant market. Overall, Dow Chemical is the most back-integrated, with inhouse<br />

production of acrylic acid, ethanol, butanol, ethylhexanol and isopropanol.<br />

<strong>The</strong> supply of monohydric alcohols for use in acrylic resin manufacture is more<br />

than adequate, and there are a number of different sources for these products. <strong>The</strong><br />

principal alcohols used in the manufacture of acrylic resins are methanol, butanol,<br />

ethanol and ethylhexanol. <strong>The</strong> supply of methanol and ethanol is not expected to<br />

be a problem, since acrylics production represents a comparatively small end use.<br />

With respect to butanol and ethylhexanol, however, the situation is different since<br />

acrylics manufacture represents a significant outlet for both alcohols.<br />

Acetone is the largest volume feedstock used in the manufacture of methacrylates,<br />

specifically methyl methacrylate. Unlike acrylates, which all begin with acrylic<br />

<strong>Freedonia</strong> Industry Study

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